Julio v. Commissioner
United States Tax Court
Claire Construction Co., a personal holding company, was liquidated and all of its assets were transferred to its shareholders. At liquidation the corporation's liabilities included "qualified indebtedness" as defined in sec. 545(c)(3). Sec. 545(c)(1) allows a deduction from taxable income in computing undistributed personal holding company income of amounts paid to retire qualified indebtedness.
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Claire Construction Co., a personal holding company, was liquidated and all of its assets were transferred to its shareholders. At liquidation the corporation's liabilities included "qualified indebtedness" as defined in sec. 545(c)(3). Sec. 545(c)(1) allows a deduction from taxable income in computing undistributed personal holding company income of amounts paid to retire qualified indebtedness. Held, the mere distribution of assets in liquidation, coupled with the assumption by the distributee-shareholders of the distributor's liabilities, does not meet the requirement of sec. 545(c)(1)…
1Opinion of the Court
Edward Julio and Carl Julio, Transferees, Petitioners v. Commissioner of Internal Revenue, Respondent
Julio v. Commissioner
Docket No. 9429-75
United States Tax Court
69 T.C. 1; 1977 U.S. Tax Ct. LEXIS 41;
October 3, 1977, Filed
Decision will be entered for the respondent.
Claire Construction Co., a personal holding company, was liquidated and all of its assets were transferred to its shareholders. At liquidation the corporation's liabilities included "qualified indebtedness" as defined in sec. 545(c)(3). Sec. 545(c)(1) allows a deduction from taxable income in computing undistributed personal…
2Cases cited4 opinions
- Focht v. CommissionerUnited States Tax Court · 1977
- Citizens Nat. Trust & Savings Bank of Los Angeles v. WelchCourt of Appeals for the Ninth Circuit · 1941
- I. E. Doggett v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
- Julio v. CommissionerUnited States Tax Court · 1977